What Does It Mean To Breach A Contract In Singapore?
Contracts are legally binding documents that contain the terms of an agreement between two or more parties. 

However, things get complicated when a party fails to comply with it.

What follows a breach of contract?

A breach of contract occurs when the defaulting party fails to perform a contractual obligation without prior notice.

Now the question arises, what follows a breach of contract?

Here are some scenarios where a breach of contract takes place –

  • Late performance of agreed terms.
  • Defaulting party refuse to perform what they agreed upon.
  • The defaulting party does not deliver a complete or suitable result.
  • The defaulting party violates an agreement deliberately.

It is important to note that not all of the mentioned cases point towards a breach of the contract immediately.

 

There are two more factors considered while evaluating a breach of contract case in Singapore –

Express terms

The contractual obligations put down in writing are the express terms. Now the words are legally binding.

However, the defaulting party must have failed to perform the duties with complete knowledge of the contract.

The court can ascertain a violation as a breach if the express terms are well defined.

Any agreement, including clear express terms, qualifies as evidence in prosecution.  Also, no social or commercial excuses free a defaulting party from a breach of contract.

 

No lawful excuse

There should not be any reasonable cause for the party to violate any terms of the agreement.

Defaulters are if they notify regarding any unprecedented circumstances beforehand or with evidence later. Also, no social or commercial excuses free a defaulting party from a breach of contract.

 

How to resolve a Breach of contract?

The terms of a contract can alter following the breach of contract. The innocent party can also sue for damages or violations.

There are some legal approaches to resolve breach of contract –

  1. Monetary compensation is the usual relief for breach of contract. The innocent party is entitled by law to ask for damages. However, the amount is open to negotiations.
  2. The innocent party can end the contract immediately and no longer associate themselves with the defaulters. Both parties are henceforth relieved of any contractual obligations they may have held.
  3. The defaulting party is compelled to fulfill a task or requirement by order if they fail to comply with the terms of the contract. It is called specific performance.
  4. The prohibitory injunction also compels the defaulting party to uphold any promises made during the contract.

 

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